Tesla can sell a record number of cars in China

Despite pressure from local rivals such as BYD, Tesla is forecast to continue to set records for vehicle sales in China this quarter.

Shi Ji, an analyst at China Merchants Bank International Securities, forecasts that Tesla may sell 155,000 vehicles in China in the second quarter. This figure is up 13% from the old record set last quarter.

However, Tesla 's market share there could be as low as 13.7%, down from 16% in the first quarter. In contrast, automakers like BYD and Aion will increase their market share, Shi estimates.

Deutsche Bank also forecasts Tesla sales in China to reach 153,000 units in the second quarter. The global figure is estimated at 448,000 units.

"If it wants to grow further, Tesla needs to expand to other cities in China. However, its direct selling model will be very expensive if it expands into hundreds of cities. BYD It's different. They have a great advantage thanks to dealers," said Yale Zhang, director of consulting firm Automotive Foresight.

Tesla will release official figures later this week. Meanwhile, data for China will be released in the first week of July.

China is currently Tesla's second-largest market, after North America. This is also where their largest factory is located. Earlier this year, Tesla repeatedly lowered the price of electric cars to increase production, starting a price war with rivals.

While smaller competitors, such as Nio and Xpeng, are still struggling as sales in China have declined in recent months, BYD has taken the opportunity to consolidate its leadership position with the launch of vehicles priced under 300,000 people. yuan ($41,500).

BYD is also catching up with Tesla in the international market, increasing exports. In Singapore, they sold more cars than Tesla in the first five months of the year. In Australia last month, the company's Atto 3 also sold more than Tesla's Model 3.

Tesla is planning to launch revamped versions of the Model 3 and Model Y to boost sales. They are also working with Chinese authorities to get approval to use self-driving software on vehicles in the country.

Tesla's Shanghai factory is aiming for a capacity of more than one million units per year. The company is also aiming to sell cars made in China to new markets in the region such as Thailand and Malaysia.

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